DEMOGRAPHIC ATTRIBUTES AND TAX MORALE

Adegoke Adewuyi Gabriel and Ogbebor Osadebamwen Faith

Department of Economics, University of Benin, Edo State, Nigeria.

gabriel.adegokesog@gmail.com

Department of Taxation, University of Benin, Edo State, Nigeria.

osadebamwenogbebor@gmail.com

Abstract

The study investigates the effect of demographic attributes on tax morale using undergraduate

student in University of Benin as case study. To achieve this, primary data was used and it was

analyzed using descriptive analysis and linear regression model. The data was derived from the

responses of 235 respondents in the questionnaire distributed. The findings revealed that taxpayer

marital status, religion, education and age are all statistically significant at 5% level of significance

while taxpayer gender and ethnic are statistically insignificant at 5% level of significance. The

study therefore concludes that taxpayers age, marital status, religion and education are the

important demographic factors that affect tax morale. The study recommends that government

should educate citizens more about the important of paying tax as this will help to improve tax

morale.

Keywords: Tax morale, Demographic

INTRODUCTION

Background of Study

“Tax is a compulsory financial charge or imposed on a taxpayer by a governmental

organization in order to collectively fund government spending, public expenditures, or as a way

to regulate and reduce negative externalities which occur due to market failures. All countries have

a tax system in place, in order to pay for public, common societal, or agreed national needs and

for the functions of government.” Some countries like Saudi Arabia, Hong Kong and Azerbaijan

levy a flat percentage rate of taxation on income (E&Y, 2022), but most taxes are progressive

based on brackets of annual income amounts.

Tax payment may be direct or indirect (James et al., 2004). “A direct tax is one paid directly

to the government by the taxpayer on whom it is imposed. This is often accompanied by a tax

return filed by the taxpayer. Examples include income tax and corporate tax. An indirect tax (such

as value added tax) is a tax collected by an intermediary from the person who bears the ultimate

economic burden of the tax. The intermediary later files a tax return and forwards the tax proceeds

to government with the return.”

The topic of taxation has drawn a lot of interest in the literature over the years. Taxation is

one of the most important topics in governance, both in developed and developing nations (Teera

& Hudson, 2004). Taxes are significant sources of funding for governments. The first recorded

history of taxation dates back to ancient Egypt approximately 3000 B.C. and includes direct and

indirect taxes that can be paid in cash or its equivalent (Artoni, 2015).

Tax is a social contract between the citizen and the government of a nation, both parties are

expected to oblige to their responsibility, the citizen are expected to pay their taxes while the

government is also expected to utilize these taxes for the welfare and benefits of the citizens (Alm,

2012). The trust relationship concept between the citizen and the government, shows that it is

expected that these taxes been utilized for the benefits and purpose of the society, but over the

years there have been gap in this contract of both parties not yielding and living up to expectations,

this has resulted in low level of tax compliance, tax evasion, tax avoidance (Guyer, 1992). “In

recent times, cases of low level of tax morale have affected the capacity of the government not

being able to raise adequate revenue to finance its economic activities rather government had

resorted to external borrowings for finances.”

Statement of the research Problem

“The government has continued to lament on the inadequacies in funding the economy,

when there are other avenues that can be properly harness to resolve economic financial issues.

Tax is one major source of revenue that the government have failed to harness (Odusola, 2006).

The low level of tax morale over the years have continued to inhibit government potentials in

realizing the needed objective. In developing countries, the inability of governments to generate

adequate tax revenue has been linked to poor tax morale (Kangave et al., 2018). Therefore,

understanding what motivate taxpayers (tax morale) is key to resolving tax compliance issues and

can lead to adequate revenue generation from taxes.”

There have been numerous empirical studies explaining the nature of tax morale and

compliance behaviour. Orumwense et al., (2021) examined the determinants of tax morale and tax

compliance in Nigeria, the study revealed that employment, religion, age have significant effect

on tax morale. Torgler et al., (2004), also examined the extent to which cultural background of

taxpayers effect their tax morale. It was discovered that the cultural background of taxpayers has

no significant effect on their willingness to pay tax morale. It is against this backdrop this study

has singled out tax morale as a concept in understanding the nature of tax compliance in the society,

hence understanding the determinants of tax morale would help resolve the issue of tax evasion,

tax avoidance, low level of tax compliance and ensure adequate tax compliance in the society.”

Research Questions

“As a result of the above statement of problem, the following research questions were formulated:

i. To what extent does taxpayer’s age determine tax morale?

ii. What is the effect of taxpayer’s gender on tax morale?

iii. What is the effect of taxpayer’s religion on tax morale?

iv. How does taxpayer’s education affect tax morale?

v. What is the effect taxpayer’s marital status on tax morale?

vi. To what extent does taxpayer’s ethnic determine tax morale?”

Objectives of the Study

“The main objective of this study is to explore the effect of demographic attributes on tax

morale using undergraduate student in the University of Benin as case study. The specific

objectives are to: ascertain the relationship between taxpayer’s age and tax morale;

i. determine the influence of taxpayer’s gender on tax morale;

ii. examine the relationship between taxpayer’s religion and tax morale;

iii. ascertain the effect of taxpayer’s education on tax morale;

iv. determine the relationship between taxpayer’s marital status and tax morale; and

v. investigate the influence of taxpayer’s ethnic on tax morale.”

Research Hypotheses

The following research hypotheses were formulated.

: There is no significant effect between taxpayer’s age and tax morale.

: Taxpayer’s gender has no significant effect on tax morale

: Taxpayer’s religion has no significant effect on tax morale.

: There is no significant effect between taxpayer’s education and tax morale.

: There is no significant effect between taxpayer’s marital status and tax morale.

: Taxpayer’s ethnic has no significant effect on tax morale.”

LITERATURE REVIEW

Concept of Taxation

Tax is a compulsory financial charge or some other type of levy imposed on a taxpayer (an

individual or legal entity) by a governmental organization in order to collectively fund government

spending, public expenditures, or as a way to regulate and reduce negative externalities (Charles,

2015). Appah and Oyandonghan (2011) describes tax as compulsory levy imposed on subject or

upon property by the government to provide security, social amenities and create condition for the

economic well-being of the society. Hart (2015) defined taxation as the price paid by a civilized

society for the opportunities of remaining civilized but unfortunately the citizen doesn’t see the

reasons to pay tax if there is no development in the society regardless of the opportunity of

remaining civilized, this gives them the more opportunity to evade and avoid tax.

Revenue generation, redistribution of income and wealth, management of the economy,

harmonization of economic objectives are all the objectives of taxation.

Concept of Tax Morale

The term “tax morale” was first coined by Schmölders a German scholar back in 1960 who

defined it as “the attitude of a group or the whole population of taxpayers regarding the question

of accomplishment or neglect of their tax duties; it is anchored on citizens tax mentality and in

their consciousness of being a citizen, which is the base of their inner acceptance of tax duties and

acknowledgement of the sovereignty of the state (Schmölders ,1960). “Despite the definition given

by Schmölders, tax morale is still a debated notion with different meanings, Schmolders argued

that, instead of looking for reasons why people evade taxes; focus should be on reasons why people

decide to pay taxes, tax morale was therefore considered to be the appropriate answer.” Tax morale

is the internalized obligation, the willingness, and the intrinsic motivation to pay tax (Alm &

Torgler ,2006b). Wan Ahmad et al., (2013) see tax morale as a measure of attitude of taxpayers

unlike tax evasion that measure their behaviour, it is related to civic duty and linked to ethics

(Torgler& Murphy, 2005). Luttmer and Singhal (2014) identify five categories of mechanisms that

contribute to improving tax morale. The first is "intrinsic motivation," which may be associated

with pride or a good self-image linked to honesty or participation in the public good. The second

is "reciprocity", which includes "public goods provided by the state or perceptions of the fairness

of the tax system". The third is "peer effect and social influences", which depends on how tax

payment is valued in society and how others act towards it. "Long-run cultural factors" is the fourth

category of mechanisms they identified and "information imperfections and deviations from utility

maximization" is the fifth. “The latter mechanism is related to the fact that taxpayers with

inaccurate or too little information about the tax system may not comply with obligations they do

not understand or may make irrational decisions.

Demographic Attributes

“Demographic attributes refer to the characteristics of a population, such as age, gender,

race, ethnicity, and education level. Demographic attributes are essential indicators of population

dynamics, such as population growth, migration, and urbanization. Demographic attributes are

also important for social and economic planning and policy development.”

2.3.1 Types of Demographic Attributes

“Demographic attributes can be classified into several types, including:”

Age: “Age refers to the chronological age of a person, usually measured in years. Age is an

essential demographic attribute, as it influences population growth, mortality, and morbidity

rates. Age distribution helps identify different age groups with a population. Certain age groups

may be eligible for specific tax benefits. In Nigeria, individuals are generally required to start

paying tax once they reach the age of 18.”

Gender: “Gender refers to the social and cultural roles and expectations associated with being

male or female. Gender is an essential demographic attribute, as it influences social and

economic opportunities and access to healthcare and education.”

Race and Ethnicity: “Race refers to the physical characteristics of a person, such as skin color,

while ethnicity refers to cultural and social characteristics, such as language and religion. Race

and ethnicity are essential demographic attributes, as they influence social and economic

opportunities and can lead to disparities in healthcare and education. Ethnicity also refers to a

person’s cultural or ancestral background. It helps understand the diversity within a population

and can be useful for creating inclusive content or addressing specific cultural needs.”

Education: “Education refers to the level of formal education attained by a person. Education

is an essential demographic attribute, as it influences social and economic opportunities and is

a predictor of future income and employment prospects. Education levels indicate the

knowledge and skills possessed by individuals within a population.”

Religion: Religion can be considered as a demographic attribute as it pertains to the study of

populations and their characteristics. It refers to the beliefs, practices and affiliations

individuals have with a particular faith or religion group.

Marital Status: Marital status is a demographic attribute that refers to an individual’s legal or

social status in relation to marriage. It provides information about a person’s current or past

marital situation. Marital status can be categorized into various groups, including single

married, divorced, widowed or separated. Thes categories provide insights into the individual’s

current relationship status.

Theoretical Review

Theory of Reasoned Action

The theory of reasoned action aims to explain the relationship between attitudes and behaviors

within human action. It is mainly used to predict how individuals will behave based on their pre-

existing attitudes and behavioral intentions. An individual's decision to engage in a particular

behavior is based on the outcomes the individual expects will come as a result of performing the

behavior. Developed by Martin Fishbein and Icek Ajzen in 1967, the theory derived from previous

research in social psychology, persuasion models, and attitude theories”. Fishbein's theories

suggested a relationship between attitude and behaviors (the A-B relationship). “However, critics

estimated that attitude theories were not proving to be good indicators of human behavior. The

theory of reasoned action was later revised and expanded by the two theorists in the following

decades to overcome any discrepancies in the A-B relationship with the theory of planned

behavior (TPB) and reasoned action approach (RAA).” The theory is also used in communication

discourse as a theory of understanding (Rogers et al., 2002).

The primary purpose of the theory of reasoned action is to understand an individual's voluntary

behavior by examining the underlying basic motivation to perform an action (Doswell et al.,

2011). The Theory of Reasoned Behavior states that a person's intention to perform a behavior is

the main predictor of whether or not they actually perform that behavior (Glanz et al.,

2015). “Additionally, the normative component (i.e. social norms surrounding the act) also

contributes to whether or not the person will actually perform the behavior.” According to the

theory, intention to perform a certain behavior precedes the actual behavior (Azjen, 1986). “This

intention is known as behavioral intention and comes as a result of a belief that performing the

behavior will lead to a specific outcome. Behavioral intention is important to the theory because

these intentions” "are determined by attitudes to behaviors and subjective norms" (Colman, 2015).

Theory of Reasoned Action (TRA) “suggests that stronger intentions lead to increased effort to

perform the behavior, which also increases the likelihood for the behavior to be performed. Theory

of reasoned action explain the following concept: Behavior, Attitudes, Behavior belief, Evaluation,

Subjective norms, Behavioral Intention.”

The theory of planned behavior

“The Theory of Planned Behavior (TPB) is a psychological theory that links beliefs

to behavior. The theory maintains that three core components, namely, attitude, subjective norms,

and perceived behavioral control, together shape an individual's behavioral intentions. In turn, a

tenet of theory of planned behavior is that behavioral intention is the most proximal determinant

of human social behavior”. Ajzen (1985), proposed Theory of Planned Behavior (TPB) in his

chapter "From intentions to actions”. According to Fishbein & Ajzen (1975), if an individual

evaluates a suggested behavior as positive (attitude), and if he or she believes significant others

want the person to perform the behavior (subjective norm), the intention (motivation) to perform

the behavior will be greater and the individual will be more likely to perform the behavior.

Attitudes and subjective norms are highly correlated with behavioral intention; behavioral

intention is correlated with actual behavior (Sheppard et al.,1988).

According to Norberg et al., (2007) behavioral intention does not always lead to actual

behavior. “This is because behavioral intention cannot be the exclusive determinant of behavior

where an individual's control over the behavior is incomplete, Ajzen introduced Theory of Planned

Behavior (TPB) by adding to Theory of Reasoned Action (TRA) the component "perceived

behavioral control." In this way he extended Theory of Reasoned Action (TRA) to better predict

actual behavior.

Empirical Review

“Khalil and Sidani (2022) examine tax morale and their relationship with personal traits,

as moderated by religiosity and income, in a multi-faith cultural context characterized by a weak

tax administration. The study explores association between the big five personality triats (openness

to experience, Conscientiousness, Extraversion, Agreeableness, and Neuroticism) and tax morale.”

“The result show that conscientiousness is negatively associated with tax morale. Religiosity was

found to moderate the relationship between extraversion and self-interest. Income was seen to

temper with the relationship between extraversion and self-interest. The study concluded that tax

morale is mostly determine by taxpayers’ perception of the equality of the tax system rather than

demographic characteristics or personality traits.”

“Orumwense et al, (2021) examined the determinant of tax morale in Nigeria. The

objective of the study are: trust in government, culture, age, religion, education and employment.

The study adopted cross sectional research survey design as a method of investigation Four (4)

public limited companies listed under the Nigeria stock exchange formed the basis upon which

investigation was carried and sample size obtained for the study. Questionnaire was used as a

research instrument to elicit responses, a total of three hundred and eighty-two (382) questionnaire

copies were administered and all the three hundred and eighty-two copies were retrieved. Multiple

regression was used to analyses the data. The study revealed that trust in government, employment,

religion, age have significant relationship with tax morale, while culture and education have

insignificant relationship with tax morale in Nigeria. The study concludes that transparency,

accountability, people-oriented tax policies and using non-economic factor in explaining the

concept tax of compliance were lagging on the part of the government and need to be addressed.

METHODOLOGY

Research Design

“The study basically adopts a survey research design in which structured questionnaire was

designed and distributed to the respondents as a means of gathering information. This design is

most appropriate and suitable for measuring or ascertaining the impact of one variable on the other.

The study employs research survey design since it seeks to ascertain respondents current

perception of the subject matter. As a result, the primary data for the study will be obtained by field

survey of knowledgeable individuals with the administration of questionnaire to respondents”

Population and sample of the Study

“The target population of this study is the 400 and 300 level students of Accounting and Taxation

Department, University of Benin, Benin city, Edo State. This makes up a total population of 563

students. Based on the size, the study requires a sample. In determining the sample size, Yamani

Formula was used with the assumption of a confidence level of 95%.” Therefore, a sample of two

hundred and thirty-five (235) students was chosen out of the total population of students

considered for the study. Thereafter, the stratified sampling method was applied to compute the

number of samples for each department and level to be considered.

Sources of Data

“The source of data for this study is primary in nature. This source of information was

obtained through questionnaire. The questionnaire was structured because of the simple fact that

respondents feel more at home with questionnaire. The questions were unambiguous and easy to

answer.”

Model Specification

“This study conceptualizes the relationship between tax morale and demographic

characteristics and a multiple regression model was thus derived. This multiple regression

econometric model explains the variation in the value of the dependent variable (tax morale) based

on a change in the independent variable, demographic characteristic (taxpayer’s age, taxpayer’s

gender, taxpayer’s religion, taxpayer’s education, taxpayer’s marital status and taxpayer’s ethnic).

Functionally, the model for the study is expressed as:”

Taxm =f (taxage, taxgen, taxreg, taxedu, taxmar, taxeth)……….. (3.1)

This model is further expressed mathematically as:

𝑇𝑎𝑥𝑚 = 𝛽

+ 𝛽

𝑇𝑎𝑥𝑎𝑔𝑒 + 𝛽

𝑇𝑎𝑥𝑔𝑒𝑛 + 𝛽

𝑇𝑎𝑥𝑟𝑒𝑔 + 𝛽

𝑇𝑎𝑥𝑒𝑑𝑢 + 𝛽

𝑇𝑎𝑥𝑚𝑎 + 𝛽

𝑇𝑎𝑥𝑒𝑡ℎ +

µ.(3.2)

Where: Taxm = Tax morale Taxage = Taxpayer’s age.

Taxgen = Taxpayer’s gender Taxreg = Taxpayer’s religion

Taxedu = Taxpayer’s education Taxma = Taxpayer’s marital status

Taxeth = Taxpayer’s ethnic µ = Error term

𝛽

= Constant 𝛽

… 𝛽

= Coefficients of the Independent variables

Apriori Expectation

Apriori expectation describes a conclusion based upon deductive reasoning rather than research or

calculation. Based on the objective of this research, the researcher’s expectation is that there will

be a positively significant relationship between Demographic attributes on Tax morale. The Apriori

expectation is stated as: β

>0, β

>0 and β

>0……

DATA PRESENTATION AND ANALYSIS

Method of data analysis

“Data analysis was carried out using E-views 10. The descriptive and inferential methods

of analysis were employed for this study. The descriptive method involved frequency tables, mean,

and percentages while the inferential methods involved the use of linear regression technique in

showing the relationship between the dependent and independent variables. The results of the data

analysis were presented in tables according to the aforementioned objectives and research question

to enable ease of understanding.”

Table 4.1: Result of the Histogram Normality Test

-0.4 -0.3 -0.2 -0.1 0.0 0.1 0.2

Series: Residuals

Sample 1 235

Observations 235

Mean -9.72e-16

Median 0.011703

Maximum 0.265848

Minimum -0.444868

Std. Dev. 0.123825

Skewness -0.382260

Kurtosis 2.773227

Jarque-Bera 6.226680

Probability 0.044452

The result of the histogram normality test reported a negative mean skewness of -0.38226 which

means leftward tailed distribution. The mean kurtosis is 2.773227 which is less than the benchmark

of three (3) and indicates a platykurtic distribution. The mean standard deviation of 0.123825

shows a deviation from the mean. The mean Jarque-Bera statistic of 6.22668 and the probability

value of 0.000000 is relatively small and indicates that the data do not follow the Gaussian normal

distribution.

Table 4.2: Correlation Analysis

Covariance Analysis: Ordinary

Date: 10/14/23 Time: 21:52

Sample: 1 235

Included observations: 235

Correlation

t-Statistic

Probability

TAXM

TAXGEN

TAXETH

TAXEDU

TAXAGE

TAXMA

TAXREG

TAXM

1.0000

TAXGEN

-0.0134

1.0000

-0.2058

-----

0.8371

-----

TAXETH

0.0706

0.2154

1.0000

1.0809

3.3663

-----

0.2808

0.0009

-----

TAXEDU

0.3786

0.1083

0.182120

1.000000

6.2441

1.6623

2.827220

-----

0.0000

0.0978

0.0051

-----

TAXAGE

0.3667

0.3673

0.1177

0.3698

1.0000

6.0159

6.0284

1.8097

6.0748

-----

0.0000

0.0716

0.0000

-----

TAXMA

-0.0226

0.5288

0.4440

0.2195

0.3341

1.0000

-0.3453

9.5100

7.5643

3.4339

5.4099

-----

0.7302

0.0000

0.0007

0.0000

-----

TAXREG

0.3781

0.1701

0.2713

0.2325

0.2436

0.2595

1.0000

6.2334

2.6354

4.3027

3.6484

3.8333

4.1015

-----

0.0000

0.0090

0.0000

0.0003

0.0002

0.0001

-----

Table 4.3 shows the results of the correlation analysis. The correlation coefficient is mixed, with

some reporting negative correlation coefficients while other variables show a positive correlation.

The result shows a weak negative relationship (r = -0.0134) between taxpayer gender and tax

morale. Taxpayer ethnic and tax morale have a correlation coefficient of (r = 0.0706) which show

a weak positive relationship between taxpayer’s ethnic and tax morale. Taxpayer level of education

also maintain a weak positive relationship with tax morale with a correlation coefficient of (r =

0.3786).” Taxpayer age and tax morale have a correlation coefficient of (r = 0.3667) which show

a weak positive relationship between taxpayer’s age and tax morale. The taxpayer marital status

has a weak negative relationship with tax morale with a correlation coefficient of (r = -0.0226).

Lastly, Taxpayer religion and tax morale have a correlation coefficient of (r = 0.3781), this shows

a weak positive relationship between taxpayer’s religion and tax morale. “The correlation

coefficients are relatively small. The highest correlation coefficient is 0.528791 between taxpayer

marital status and taxpayer gender. This is not indicative of the problem of multicollinearity in the

regression variables because it is less than the bench mark of 0.7.

Table 4.3: Breusch-Pagan-Godfrey Test of Heteroskedasticity

Heteroskedasticity Test: Breusch-Pagan-Godfrey

F-statistic

0.328734

Prob. F(6,227)

0.9214

Obs*R-squared

2.015715

Prob. Chi-Square(6)

0.9182

Scaled explained SS

3.442118

Prob. Chi-Square(6)

0.7517

Table 4.4 presented the result of the Breusch-Pagan-Godfrey test of heteroskedasticity. The result

revealed a probability value of 0.9214 > 0.05. This indicates the absence of problem of

multicollinearity. The alternative hypothesis of homoskedasticity residual is accepted for the null

hypothesis, which signifies that the variance of the residual of the regression model is constant

Table 4.4: Breusch-Godfrey Test of Serial Correlation

Breusch-Godfrey Serial Correlation LM Test:

F-statistic

0.290150

Prob. F(2,226)

0.7484

Obs*R-squared

0.601863

Prob. Chi-Square(2)

0.7401

Table 4.5 presents the result of the Breusch-Godfrey test of serial correlation of the variables of

regression. The in significant probability value of (P=0.7484 ) shows the absence of serial

correlation in the variables of regression. This is supported by the results of the correlation

analysis of no multicollinearity in the variables.”

Table 4.5: Ramsey RESET of Model Specification

The results of the Ramsey RESET model specification test reported a probability value of 0.8326

> 0.05 )which could not sustain the null hypothesis of mis specified model of regression. Therefore,

the alternate hypothesis of a well specified model is accepted for the study.”

Ramsey RESET Test

Equation: UNTITLED

Specification: TAXMA1 TAXREG1 TAXM1 TAXGEN1 TAXETH1

TAXEDU1 TAXAGE1 C

Omitted Variables: Squares of fitted values

Value

Probability

t-statistic

0.211640

226

0.8326

F-statistic

0.044792

(1, 226)

0.8326

Likelihood ratio

0.046372

0.8295

F-test summary:

Sum of Sq.

Mean Squares

Test SSR

0.004649

Restricted SSR

23.46094

227

0.103352

Unrestricted SSR

23.45629

226

0.103789

LR test summary:

Value

Restricted LogL

-62.93348

Unrestricted LogL

-62.91029

Table 4.6: Regression Result

The result of the regression analysis is presented in Table 4.7.. The preliminary analysis shows a

coefficient of multiple determination of 0.336394 and an adjusted value of 0.318930., which

simply explain that 33% of the variation in tax morale is explained by the independent variables

considered in this study (taxpayer age, taxpayer marital status, taxpayer religion, taxpayer gender,

taxpayer ethnic and taxpayer education) while the remaining 67% are captured by the error term.

The F statistics is greater than 2 which indicate that all the explanatory variables taken together

are statistically significant.”

Test of Hypotheses

“The first null hypothesis has a t-statistics value of 5.1979 which when compared with the

t-tabulated value of 1.96, show that taxpayer’s age is significant at 5% level of significant.

Therefore, the first null hypothesis of no significant effect between taxpayer’s age and tax morale

was rejected at 5% level of significant. The regression result revealed a positive relationship

between taxpayer age and tax morale. Therefore, taxpayer’s age and tax morale are positively

related and statistically significant at 5% level of significance.”

Dependent Variable: TAXM

Method: Least Squares

Date: 10/13/23 Time: 15:44

Sample: 1 235

Included observations: 235

Variable

Coefficient

Std. Error

t-Statistic

Prob.

11.46987

1.170948

9.795373

0.0000

TAXMA

-0.215469

0.061752

-3.489250

0.0006

TAXREG

0.241355

0.049578

4.868214

0.0000

TAXGEN

-0.069942

0.049437

-1.414771

0.1585

TAXETH

0.048568

0.058467

0.830696

0.4070

TAXEDU

0.235813

0.059849

3.940121

0.0001

TAXAGE

0.276714

0.053236

5.197877

0.0000

R-squared

0.336394

Mean dependent var

21.57447

Adjusted R-squared

0.318930

S.D. dependent var

3.010982

S.E. of regression

2.484872

Akaike info criterion

4.687654

Sum squared resid

1407.806

Schwarz criterion

4.790705

Log likelihood

-543.7993

Hannan-Quinn criter.

4.729199

F-statistic

19.26285

Durbin-Watson stat

2.050859

Prob(F-statistic)

0.000000

“The analysis result shows the second hypothesis has a t-statistics value of -1.4148, which

when the absolute value is compared with the t-tabulated value of 1.96, show that taxpayer’s

gender is statistically insignificant at 5% level of significance. Therefore, the hypothesis of

taxpayer’s gender having no significant effect on tax morale was accepted at 5% level of

significance. The regression results also revealed that taxpayer’s gender has a negative relationship

with tax morale. Therefore, taxpayer’s gender is negatively related to tax morale and it is not a

statistically significant factor in determining tax morale among taxpayers at 5% level of

significant.”

“The third hypothesis of taxpayer’s religion having no significant effect on tax morale was

rejected since the t-statistic value of 4.8682 is greater than the t-tabulated value of 1.96% at 5%

level of significance. The result also revealed that taxpayer religion has a positive relationship with

tax morale. Therefore, taxpayer’s religion and tax morale are positively and statistically significant

at 5% level of significance.”

“The fourth hypothesis was rejected at 5% significant level because the t-statistics value

3.9401 is greater than the t-table value 1.96. The study revealed a positive relationship between

taxpayer education and tax morale, which simply means that the more taxpayer gets educated on

the importance of tax, the more they are willing to pay tax. The study also revealed that taxpayer

education is a significant factor in determining the tax morale of taxpayers.”

“Taxpayer’s marital status is significant at 5% since the t-statistic absolute value of 3.4893

is greater than the t-table value of 1.96. Therefore, the fifth hypothesis of no significant effect

between taxpayer’s marital status and tax morale is rejected at 5%. The analysis results also

revealed a negative relationship between taxpayer marital status and tax morale. Therefore,

taxpayer’s marital status and tax morale are negatively and significantly related.”

“Lastly, the t-statistic value of 0.83069 is less than the t-table vale of 1.96 at 5% level of

significance. Therefore, the hypothesis of no significant effect between taxpayers ethnic and tax

morale was accepted at 5% level of significance. The study further revealed a positive relationship

between taxpayer ethnic and tax morale. Therefore, taxpayer’s ethnic and tax morale are positively

and insignificantly related”.

SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATION

Summary of Findings

1. Taxpayer religion has positive and significant relationship with the level of tax morale.

2. Taxpayer marital status has a negative and significant relationship with tax morale.

3. Taxpayer gender and tax morale is negatively related and statistically insignificant at 5%

level of significant.

4. The study revealed that taxpayer ethnic and tax morale are positively related, but taxpayer

ethnic is an insignificant variable in determining tax morale.

5. Taxpayer education and tax morale is a positively related and statistically significant at 5%

level of significant.

6. Taxpayer age has a positive and significant relationship with tax morale.

Conclusion

“The study explored the effect of demographic attribute on tax morale. The data used was

gotten from the structured questionnaires completed by 235 respondents. The study conclusively

revealed that taxpayer marital status, religion, education and age are all statistically significant at

5% level of significant. Therefore, hypothesis one, three four and five were rejected, while

hypothesis two and six are both accepted. Conclusively, the study documented that taxpayers age,

marital status, religion and education are the important demographic factors that affect tax morale.”

Recommendation

The following recommendations are made in line with the above findings:

1. Government should education citizens more about the important of paying tax as this will

help improve tax morale.

2. Religion leaders have a significant role to play in enlightening their members on the

importance of paying their tax. As the result of this study shows that religion has a positive

relationship with tax morale and it is also statistically significant factor in determining tax

morale.

3. Government should try to create awareness on the importance of tax payment on dependent

citizens, so as to prepare their mind for their responsibility to the society when they are of

age.

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